The fall in home ownership among young people in recent decades has fuelled concerns that Britain is not building enough new homes.

However, others have criticised millennials for excessive spending, which has reduced their ability to save for a deposit.

Tim Gurner, an Australian property developer, became an internet sensation after criticising millennials for wasting money on avocado on toast and expensive coffee.

Details of home ownership in the UK came as sterling on Wednesday hit its highest level against the euro in almost two years amid expectations of sharper interest rate cuts in Europe.

The pound was trading at £0.85 against the euro on Wednesday, the strongest exchange rate since August 2022, after rising by as much as 0.3pc against the European Union currency.

Sterling has now climbed by 2pc since the start of the year as traders bet on expectations that the Bank of England will be cutting interest rates less sharply than policymakers in the EU.

Higher interest rates draw in money from around the world as investors seek higher returns, pushing up the value of a currency.

Traders are expecting the European Central Bank to be one of the first major banks to start cutting interest rates, with the first to come as soon as next month.

ECB chief economist Philip Lane this week told the Financial Times: “Barring major surprises, at this point in time there is enough in what we see to remove the top level of restriction.”

Markets are pricing in at least two reductions by the ECB this year.

By contrast, investors have only fully priced in one Bank of England rate cut this year.

Strong services inflation figures last week spooked traders who pushed back their prediction for the first reduction in interest rates from 5.25pc from June to November.

Hiring has picked up, with services sector employment in the three months to May rising at the fastest pace in two years, according to a survey by the Confederation of British Industry (CBI).

Costs per employee continued to climb at above-average rates.

The upcoming election has also meant few people are expecting an imminent interest rate cut. Since becoming independent in May 1997, the Bank of England has never cut rates immediately before a general election.